Cognizant has postponed its salary hikes to August 2025, delaying increments by five months from the usual timeline of March. However, eligible employees will still receive their bonuses in March 2025.
This marks the second consecutive year that the IT giant has deferred pay raises, affecting thousands of employees worldwide. The decision is part of Cognizant’s cost-cutting strategy in response to economic challenges. As IT firms face slow revenue growth and reduced client budgets, many companies are making cautious financial moves. Industry leaders such as TCS, Infosys, and HCLTech have also adjusted their salary increment schedules in recent months.
For employees, this delay extends the period of financial uncertainty. Many were counting on salary hikes to manage rising living costs and achieve long-term financial goals. Although bonuses provide some relief, the lack of timely increments may lead employees to consider alternate job opportunities. Professionals with in-demand skills in areas like AI, cybersecurity, and cloud computing can often find better compensation in a competitive market.
Cognizant’s leadership remains focused on growth through digital transformation and AI-driven solutions. By prioritizing technological investments, the company aims to maintain financial stability amid uncertain market conditions. Despite these cost-control measures, sustaining employee morale and retaining talent will be significant challenges.
Employees have expressed mixed reactions to the delay. While some understand the company’s financial constraints, others are frustrated by the uncertainty surrounding their career growth. Team leads and managers also face the challenge of ensuring that productivity and engagement do not suffer.
As the August timeline approaches, Cognizant will need to strike a careful balance between its financial strategy and employee expectations. The coming months will be crucial in determining how the company’s approach impacts its workforce and overall market standing.
